MIRA INFORM REPORT

 

 

Report No. :

353113

Report Date :

12.12.2015

 

IDENTIFICATION DETAILS

 

Name :

HONGFENG PRINTING AND DYEING MILL LIAONING

 

 

Registered Office :

No. 15, Section 6, Jiefang Road, Linghe District, Jinzhou, Liaoning Province 121000 Pr

 

 

Country :

China

 

 

Date of Incorporation :

07.07.2000

 

 

Com. Reg. No.:

210700004033526

 

 

Legal Form :

One-Person Limited Liability Company

 

 

Line of Business :

Subject is engaged in manufacturing and processing various textiles; exporting self-made products and technologies; importing raw materials, machinery, instruments, and relevant technology for its production and research, excluding the imported goods controlled and forbidden by the state; processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; selling textile raw materials, dyeing chemicals and garments; garment processing

 

 

No. of Employee :

520

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

CHINA - ECONOMIC OVERVIEW

 

Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to "economic security," explicitly looking to foster globally competitive industries. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2014 stood as the largest economy in the world, surpassing the US for the first time in modern history. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, in July 2005 China moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. In 2014 the People’s Bank of China (PBOC) doubled the daily trading band within which the RMB is permitted to fluctuate.

The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2014 more than 274 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development.

Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.

 

Source : CIA

 

 

 

COMPANY NAME AND ADDRESS

 

HONGFENG PRINTING AND DYEING MILL LIAONING

 

NO. 15, SECTION 6, JIEFANG ROAD, LINGHE DISTRICT, JINZHOU, LIAONING PROVINCE 121000 PR CHINA

 

TEL: 86 (0) 416-3567778

FAX: 86 (0) 416-3567770

 

***Note: SC’s address should be the heading one, while SC’s Dalian Marketing & Sales Departments locates in the (Block B, Room 2101, Yuanda Building, No.19 Duli Street, Dalian, Liaoning China)

 

 

EXECUTIVE SUMMARY

 

Date of Registration         : july 7, 2000

REGISTRATION NO.                  : 210700004033526

LEGAL FORM                           : One-person Limited Liability Company

CHIEF EXECUTIVE                   : wu yang (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 51,870,000

staff                                      : 520

BUSINESS CATEGORY             : manufacturing & processing & trading

Revenue                                : N/A (AS OF DEC. 31, 2014)

EQUITIES                                 : N/A (AS OF DEC. 31, 2014)

WEBSITE                                  : N/A

E-MAIL                                     : N/A

PAYMENT                                : SLOW BUT CORRECT

MARKET CONDITION                : average

FINANCIAL CONDITION             : N/A

OPERATIONAL TREND             : ORDINARY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                    : CNY 6.31 = USD

 

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

 

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

 

Operational Trend:-                                            General Reputation:-

Upward                                                             Excellent

Steady                                                              Good

Fairly Steady                                                     Fairly Good

Ordinary                                                            Average

Fair                                                                   Fair

Stagnant                                                           Detrimental

Downward                                                         Not known

Not known                                                         Not yet be determined

Not yet be determined

 

 

LEGAL STATUS & HISTORY

 

SC was established as a limited liabilities company of PRC on July 7, 2000. However, SC changed to present legal form, and was registered as one-person limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 210700004033526 in 2011.

 

SC’s Organization Code Certificate No.: 71968688-3

SC’s Tax No.: 210703719686883

 

SC’s registered capital: CNY 51,870,000

 

SC’s paid-in capital: CNY 30,000,000

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

2010

Registered Capital

CNY 20,000,000

CNY 30,000,000

Company Name

Hongfeng Printing And Dyeing Mill Co., Ltd.

Liaoning Hongfeng Printing & Dyeing Co., Ltd.

2011

Legal Form

Limited liabilities company

One-Person Limited Liabilities Company

2014-1-7

Registered Capital

CNY 30,000,000

CNY 51,870,000

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Liaoning Hongfeng Industry Development Co., Ltd.

100

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman and General Manager

Wu Yang

Supervisor

Zhang Lan

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                   % of Shareholding

 

*  Liaoning Hongfeng Industry Development Co., Ltd.                                     100

-----------------------------------

Date of Registration: July 14, 2004

Registration No.: 210700004042037

Legal Form: Limited Liability Company

Chief Executive: Wu Yang

Registered Capital: CNY 30,000,000

 

 

MANAGEMENT

 

Wu Yang , Legal Representative, Chairman and General Manager

----------------------------------------------------------------------------------------------

Ø  Gender: M

Ø  Age: 50

Ø  ID# 210202196506235916

Ø  Qualification: University

Ø  Working experience (s):

 

From 2000 to present, working in SC as legal representative, chairman and general manager

Also working in Liaoning Hongfeng Industry Development Co., Ltd., Dalian Hongfeng Holdings Co., Ltd., Hongfeng (Dalian F.T.Z) International Trade Co., Ltd., Jinzhou Hongfeng Real Estate Development Co., Ltd. and Dalian Anming Hongfeng Printing & Dyeing Co., Ltd. as legal representative and chairman

 

Supervisor

-------------

Zhang Lan

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing and processing various textiles; exporting self-made products and technologies; importing raw materials, machinery, instruments, and relevant technology for its production and research, excluding the imported goods controlled and forbidden by the state; processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; selling textile raw materials, dyeing chemicals and garments; garment processing.

 

SC is mainly engaged in manufacturing, processing and selling various printing and dyeing cloth.

 

SC’s products mainly include: dyeing chemicals, dyeing cloth and garments with cotton, polyester, viscose, etc.

 

SC sources its materials 60% from domestic market, and 40% from overseas market, mainly Europe. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly Eastern Europe.

 

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.

 

*Major Customer:

=============

Shandong D&Y Textile & Garment Group Co., Ltd.

Shergroup Textiles Ltd.

Rep. Medicas Jara Fabian Jarafabi Cia Ltda.

 

*Major Supplier:

=============

Shaanxi Modern Textiles Co., Ltd.

 

Staff & Office:

--------------------------

SC is known to have approx. 520 staff at present.

 

SC owns an area as its operating office & factory of approx. 70,000 sq. meters at the heading address.

 

RELATED COMPANY

 

Dalian Hongfeng Holdings Co., Ltd.

-------------------------------------------

Date of Registration: September 8, 2006

Registration No.: 210231000020462

Legal Form: Limited Liability Company

Chief Executive: Wu Yang

Registered Capital: CNY 52,770,000

 

Hongfeng (Dalian F.T.Z) International Trade Co., Ltd.

-----------------------------------------------------------------

Date of Registration: May 18, 1999

Registration No.: 210200400016385

Chief Executive: Wu Yang

Registered Capital: CNY 11,800,000

 

Dalian Anming Hongfeng Printing & Dyeing Co., Ltd.

-----------------------------------------------------------------

Date of Registration: June 2, 2008

Registration No.: 210281400001771

Chief Executive: Wu Yang

Registered Capital: CNY 20,000,000

 

Jinzhou Hongfeng Real Estate Development Co., Ltd.

----------------------------------------------------------------

Date of Registration: April 28, 2007

Registration No.: 210700004030239

Legal Form: Limited Liability Company

Chief Executive: Wu Yang

Registered Capital: CNY 28,800,000

 

PAYMENT

 

Overall payment appraisal:

( ) Excellent      ( ) Good      (X) Average      ( ) Fair      ( ) Poor      ( ) Not yet be determined

The appraisal serves as a reference to reveal SC's payments habits and ability to pay.  It is based on the 3 weighed factors: Trade payment experience (through current enquiry with SC's suppliers), our delinquent payment and our debt collection record concerning SC.

 

Trade payment experience: SC’s suppliers declined to make any comments.

 

Delinquent payment record: None in our database.

 

Debt collection record: No overdue amount owed by SC was placed to us for collection within the last 6 years.

 

 

BANKING

 

Basic Bank:

 

Bank of Jinzhou

AC#: 402003197501018

 

 

FINANCIALS

 

The financials of SC is not available in local SAIC, and SC also refused to release the details

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with a development history of 15 years.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.79

UK Pound

1

Rs.101.10

Euro

1

Rs.73.10

CNY

1

Rs. 10.40

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

ASH

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.